August 15, 2018

See what Seven Months of the CEO Pay Ratio Looks Like

CEO pay ratio Photo by Max Bender on Unsplash

After the initial rush of proxy season, CEO pay ratio disclosures continue to trickle in. We highlighted the fact that sector and staffing strategy, and the associated employee pay, significantly influence the reported ratio. We also suggested that comparisons across companies would continue to be difficult given latitude in acceptable calculations. In this week’s Farient Brief, we revisit the pay ratio for new discoveries since May.

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July 13, 2018

A Deep Dive on This Year’s Say on Pay Results

Say on Pay

It’s hard to believe, but the eighth year of Say on Pay has come and gone. Despite legislative threats to other provisions of the Dodd-Frank Act, it appears that the areas concerning executive pay are safe for now. In this Farient Brief, we’ll look at Say on Pay results and dive a little deeper to better understand investor focus for 2018.

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May 7, 2018

Initial Readings of the CEO Pay Ratio

Nearly eight years after it was mandated by Dodd-Frank, the CEO Pay Ratio is making its debut. To date, about half of the S&P 500 and a third of the Russell 3000 have reported their figures. In this Farient Brief, we review pay ratios reported through April 15, diving deeper to see what they are telling us so far, and get a first glimpse at where they are likely to end up by the close of proxy season.

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March 30, 2018

Board Refreshment: Keeping the Board, Nimble, Diverse, and Independent

Board refreshment

Board refreshment continues to be a hot topic with investors. Now more than ever, companies are faced with competitive pressures from new technologies and shrinking market share. In response, activist investors are recognizing that a long-entrenched board has an adverse impact on growth and value creation. In this Farient brief, we look at the effectiveness of refreshment policies in accelerating change in the boardroom, and in the overall quality of management.

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January 17, 2018

How to Align Executive and Corporate Board of Directors’ Interests

Boardroom

Investors and corporate board of directors want to ensure that the interests of executives and shareholders are aligned over the long term. The instruments most used to create this alignment are ownership requirements and post-vesting/exercise holding periods. In this Farient Brief, we explore post-vesting and exercise holding period policies for companies in the S&P 500.

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